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The Legislative Assembly of Rio Grande do Sul has officially supported the constitutionality of the State Law 16.508/2026 in reply to the Direct Action of Unconstitutionality (ADI) 7.971 raised against the act by the National Association of Gaming and Lotteries (ANJL). According to the new law signed by Governor Eduardo Leite on April 24, 2026, sports betting advertising shall be subject to a series of restrictions across Rio Grande do Sul.
Betting operators are required to place warning messages regarding uncontrollable betting and debts in their advertising campaigns. In addition, betting advertisements are prohibited for minors with the ban on the use of any content featuring animated characters, mascots, artificial intelligence, or other elements aimed at catching the attention of children and young people.
The law prohibits promoting betting near educational institutions and sports facilities, while audiovisual betting advertisements are limited to the time interval between 9 p.m. and 6 a.m. PROCON–RS, the state consumer protection agency, will monitor compliance with the restrictions.
Debate on the Constitutional Grounds Reaches the Supreme Court
According to the legislators, states have concurrent competence to regulate such matters as public health, consumer affairs, as well as protecting children and adolescents, due to Article 23 and 24 of the Constitution of Brazil.
“States may supplement the legislation in areas of public interest involving health and childhood matters and consumer relationships“, the defense states.
The government of Rio Grande do Sul argues that the current law neither restricts the betting market, as it is under the Union’s competence, but rather addresses the regulation of advertising practices.
“The Union has the power to authorize and regulate betting activities, but states are competent to supplement, especially with regard to protecting consumers, children and adolescents’ physical and mental integrity, protecting vulnerable individuals, pathological gambling, and excessive indebtedness“, the legal filing states.
As a result, the government argues that the purpose of the law was to “protect consumers, ensure children and adolescents’ physical and mental integrity, protect vulnerable individuals, avoid pathological gambling and indebtedness.”
Moreover, the defense states that betting advertisements cannot be recognized as the absolute right in view of the existing restrictions applied to tobacco and alcohol advertising.
Questioning the Standing of ANJL to Initiate the Legal Proceedings
Firstly, the government questions ANJL’s eligibility to raise constitutional actions before the Supreme Court, arguing that this association lacks national character since it includes representatives from only seven states.
“The petitioner is a private civil association composed of a small number of enterprises operating in just seven federated states“, the defense argues.
In addition, the state officials emphasize that this organization defends only the commercial interests of gambling operators but not the national interests of consumers. For this reason, the petitioners seek to protect advertising freedom and their interests.
In such circumstances, the government asked the court to dismiss the case as there are no legal grounds and thematic relevance for raising constitutional challenges.
Public Health and Consumer Protection in Focus
In order to prove the legitimacy of the law, the state government referred to the studies on gambling addiction, over-indebtedness, mental illnesses, and the consequences of betting advertisements on children and vulnerable consumers.
According to the IEPS institute, the economic burden caused by pathological gambling leads to approximately BRL 38.8 billion per year while around 12.8 million people remain at risk of gambling.
In addition, the state mentioned statistics from CETIC’s TIC Kids Online report according to which 53% of Brazilian children and young people had been exposed to gambling advertisements.
“It is important to highlight that economic freedom is not absolute; it shall be restrained by ethical boundaries set by public authorities to avoid any abuse“, the defense argues.
Therefore, the government stated that the law shall be recognized as legal to protect the population from potential threats associated with mental health, excessive debt, and children’s exposure to gambling ads.
Supreme Court’s Review of the Legislation
Currently, Justice Cármen Lúcia is in charge of the consideration of the matter while having adopted the special procedure for reviewing the legislation in question.
The Legislative Assembly of Rio Grande do Sul, and the governor were ordered to provide relevant information within five days, while further analysis would be conducted, taking into account the opinion from the Office of the Attorney General and the Office of the Prosecutor General.
No dates for making a decision on the petitioners’ motion for preliminary injunction have been announced yet. However, this debate can have an extensive impact beyond Rio Grande do Sul, as many Brazilian states are working on adopting such restrictions.
Source: BNL Data
